Financial fraud refers to firms taking deceptive actions exploit investors, such as Ponzi schemes and running away with the money. The existence of many financially “illiterate” investors opens door for financial because these are likely be attracted by products that offer too-good-to-be-true returns. Our experiment survey suggest some unaware possible high-return products, justifying policy in...

— With the developments in the Information Technology and improvements in the communication channels, fraud is spreading all over the world, resulting in huge financial losses. Though fraud prevention mechanisms such as CHIP&PIN are developed, these mechanisms do not prevent the most common fraud types such as fraudulent credit card usages over virtual POS terminals or mail orders. As a result,...

Financial statement fraud has increasingly become a serious problem for business, government, and investors. In fact, this threatens the reliability of capital markets, corporate heads, and even the audit profession. Auditors in particular face their apparent inability to detect large-scale fraud, and there are various ways to identify this problem. In order to identify this problem, the majori...

Every year billions of Euros are lost worldwide due to credit card fraud. Thus, forcing financial institutions to continuously improve their fraud detection systems. In recent years, several studies have proposed the use of machine learning and data mining techniques to address this problem. However, most studies used some sort of misclassification measure to evaluate the different solutions, a...

It is estimated that between $600 and $850 billion annually is lost to fraud, waste, and abuse in the US healthcare system, with $125 to $175 billion of this due to fraudulent activity (Kelley 2009). Medicaid, a state-run, federally-matched government program which accounts for roughly one-quarter of all healthcare expenses in the US, has been particularly susceptible targets for fraud in recen...

Fraud detection is becoming increasingly important to managers of organizations, to internal and external auditors, and to regulators (Apostolou and Crumbley, 2005). Recent large frauds in many countries of the world and the Sarbanes-Oxley Act in the United States stress the importance of early detection of fraud. Financial statement frauds have weakened investor confidence in corporate financi...